Cut, Cap, and Balance Act Passes in House

HR 2560 , the Cut, Cap, and Balance Act was passed by a vote of 234 – 190. The bill has three major portions: 1) it limits total discretionary spending for FY 2012 to $1.016 trillion, exempting Social Security, Medicare, Veterans Benefits, and Interest on National Debt, and limits other direct spending to $680.7 billion. 2) limits all on-budget and off-budget outlays of Federal spending in future years to a percentage of GDP, starting with 21.7% for FY 2013, diminishing to 19.9% by FY 2021. 3) Increases the debt ceiling to $16.7 trillion on the condition that a Balanced Budget Amendment to the Constitution be forwarded to the States for consideration and ratification.